Taiwan has high hopes for Apec food emergency initiative

Taiwan hopes that all members of the Asia-Pacific Economic Cooperation forum will agree to a proposal to create an Apec Food Emergency Response Mechanism to ensure food security for countries affected by natural disasters.

Taiwan initiated the proposal during an Apec meeting in Niigata, Japan, in August. Under the plan, Apec member countries would pledge a specified amount of food aid for whenever any member faced a natural disaster.

Su-San Chang, director-general of the Department of International Affairs at Chinese Taipei's Council of Agriculture, said an Apec food emergency mechanism should be established because the region was particularly prone to natural disasters.

Of the 397 cases of natural disaster that occurred around the world from 2000 to 2007, 68 per cent occurred in the Asia-Pacific.

However, the volume of international food aid had decreased while demand for emergency food aid had escalated over the past 10 years. Severe climate change has affected food production over the period, she said.

Under the proposal, member countries would show their political commitment by pledging a specified amount of virtual food stock. The pledging of virtual instead of physical stock would serve as a risk-sharing mechanism ahead of natural disasters, when actual food stock would be released.

Taiwan has proposed the initiative due its experience in coping with natural disasters. For instance, in 2009, the country faced a severe typhoon and the government had to spend US$33 billion (Bt1 trillion) to implement a recovery effort over the next six months.

Chang said the plan should be beneficial to Apec countries, many of which suffer from natural disasters, including Thailand, which is currently hit by severe flooding.

She said the idea had been welcomed at the Niigata meeting, which was attended by 65 participants from 17 Apec members. Nonetheless, some countries have requested more details about the plan.

Taiwanese officials are now working on two initial study areas with a view to submitting information next February. These are the social and economic impact, and cost-benefit analysis.

Taipei hopes that Apec members will pledge their support for the initiative when the region's agriculture ministers meet in Russia next July.

Asked if any country disagreed with the initiative, Chang said that initially the US, Australia, Canada and New Zealand had voiced concerns that an Apec food emergency mechanism could distort trade, as well as duplicating existing food emergency mechanisms.

However, she said these countries now had a better understanding of the plan. On their first concern, the mechanism should not distort the market because countries would pledge only virtual stock, which should not affect market prices.

On the second point, she said the Apec mechanism would serve as a second front line in the event that bilateral food aid did not work.